Date: 03/18/2015

Final
BILL SUMMARY for SB15-080

HOUSE COMMITTEE ON STATE, VETERANS, & MILITARY AFFAIRS

Votes: View--> Action Taken:
Postpone Senate Bill 15-080 indefinitely. The moti
Refer Senate Bill 15-080 to the Committee on Finan		PASS
FAIL



11:55 AM -- SB15-080

Representative Lundeen, sponsor, presented Senate Bill 15-080. Under current law, the Public Employees' Retirement Association (PERA) administers a defined benefit (DB) retirement plan and a defined contribution (DC) retirement plan. Only some employees from the state division may elect to join the DC plan. The bill removes this restriction, allowing all eligible individuals employed by any PERA affiliate to join the DC plan, effective January 1, 2016. These individuals will have the ability to join during the initial retirement benefit election period and thereafter are subject to the existing laws concerning participation and the termination of membership.

On January 1, 2016, the bill also permits all existing PERA members currently in the DB plan to opt into the DC plan. These existing PERA members must make an irrevocable written election during the annual open enrollment period and DC plans will be effective the first day of the annual state employees' group benefit plan year. Employees who switch to the DC plan from the DB plan must specify whether they want to:

11:59 AM -- Ben Moultrie, representing American Association of Retired Persons (AARP), testified in opposition to the bill. Mr. Moultrie expressed his opinion that the bill would make it more difficult for retired individuals to secure their future by increasing risk. He cited his experience as a financial planner. He responded to questions from the committee.

12:11 PM -- Greg Smith, representing PERA, testified in opposition to the bill. Mr. Smith spoke about the recent history of changes to PERA laws. He indicated that the bill amends one small portion of a very complex system without taking into consideration many other portions. He responded to questions from the committee.


12:21 PM

Mr. Smith continued to discuss PERA benefits in response to questions from the committee.

12:30 PM -- Mark Ruzzin, representing Boulder County, testified in opposition to the bill. Mr. Ruzzin stated that Boulder is the only county member in PERA and is the largest member in the local government division. He indicated that current law is working and does not need to be changed. He expressed his opinion that the bill would increase risk for retirees. He brought up future evaluations of PERA that he believes will help PERA make positive choices for the future.

12:34 PM -- Lauren Schreier, representing Legislative Council Staff, responded to questions from the committee about the fiscal note.


12:44 PM

Representative Lundeen wrapped up his presentation of the bill and asked for a favorable recommendation.
BILL:SB15-080
TIME: 12:52:11 PM
MOVED:Neville P.
MOTION:Refer Senate Bill 15-080 to the Committee on Finance. The motion failed on a vote of 4-7.
SECONDED:Humphrey
VOTE
Foote
No
Humphrey
Yes
Lontine
No
Neville P.
Yes
Primavera
No
Tate
Yes
Thurlow
Yes
Tyler
No
Willett
No
Salazar
No
Ryden
No
YES: 4 NO: 7 EXC: 0 ABS: 0 FINAL ACTION: FAIL


BILL:SB15-080
TIME: 12:52:51 PM
MOVED:Salazar
MOTION:Postpone Senate Bill 15-080 indefinitely. The motion passed on a vote of 6-5.
SECONDED:Foote
VOTE
Foote
Yes
Humphrey
No
Lontine
Yes
Neville P.
No
Primavera
Yes
Tate
No
Thurlow
No
Tyler
Yes
Willett
No
Salazar
Yes
Ryden
Yes
Final YES: 6 NO: 5 EXC: 0 ABS: 0 FINAL ACTION: PASS



12:53 PM

The committee adjourned.